HomeBusiness DigestGeneral Beltings eyes US$300 000 contract

General Beltings eyes US$300 000 contract

Ndamu Sandu

GENERAL Beltings managing director Joe Tuson says the company is eyeing a US$300 000 contract to supply belting in Zambia.

, Helvetica, sans-serif”>Tuson said the company had tendered for the contract and was awaiting the results.

“We tendered for the contract and results could be out in the next few weeks,” Tuson said.

If General Beltings wins the contract, it would supply six kilometres of belting, thus improving its export contribution to total turnover.

The turnover shed 6% in the six months ending June 30.

The contract would also help boost the company’s earnings after the expiry of the contract to supply up to one kilometre of belting to South Africa’s Samancor, a chrome division of BHP Billiton.

“The eight-month contract has run its course,” he said.

Tuson said General Beltings intended to push exports in the Democratic Republic of the Congo (DRC) and Angola.

“We have not had any orders from DRC and Angola but we are looking at ways of penetrating that market,” he said.

The company presently supplies belting to Malawi and Tanzania.

In addition, the company is the largest supplier of belting to De Beers Debswana in Botswana and has a supply on demand contract, Tuson says.

He said the company had rebranded the belting as per its future plans. This had seen the introduction of new brand, gryphon at the beginning of the year to replace balatros.

He said mining and heavy industries were accounting for most of the company’s products.

“Higher volumes were sold to mines in the past six months,” said Tuson.

He said the local order book was strong while the export book was in a healthy state.

In the six months ending June 30 General Beltings saw its turnover firming to $3,49 billion up 400% in the year comparable.

Of the $3,49 billion, exports accounted for $1,87 billion while turnover from local sales was $1,6 billion.

Exports as a percentage of turnover shed 6% to 54%.

Operating profit grew by 541% to $975 million.

Attributable profit gained significantly by 602% to $702 million.

Basic earnings per share were 792 cents up 601% from 113 cents in the year comparable.

Tuson said export earnings were used to acquire raw materials.

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